Entropy, Structure and Critical Complexity

If you want to accomplish more you must become more complex. This means two things: structure and entropy. Structure is what defines functionality, entropy is what allows a system to react in a creative and novel way to a changing and possibly harsh environment


Can Complexity Thinking Fix Capitalism?

See on Scoop.itComplexity & Resilience

Can Complexity Thinking Advance Management and Fix Capitalism?

David G Wilson‘s insight:

“An intense effort at regulating the banks has side-stepped the root cause—a lack of transparency—and instead has tried to build fences around the problem. But fences won’t help in the case of a global financial meltdown: the amounts of money involved are just too large. If we want to avoid an even larger meltdown in future, the only solution is to have transparency on what the banks are up to. It’s possible that complexity thinkers like Mark Buchanan may be able to help devise mechanisms that constitute a step towards the needed transparency. But the key requirement here is political will to insist on transparency, not the modelling of complexity science”


See on www.forbes.com

Is Risk Management a Source of Risk

See on Scoop.itComplexity & Resilience

If you have risk function, however, that fully understands the business model, the deployment of its operational strategy, the sector the business operates in and the macro-economic and socio-political environment in which it operates, then they will be able to provide risk information that is relevant to the business, and can be understood by the business.

David G Wilson‘s insight:

‘Knowledge’ that fails to distinguish between practises that are based upon sound theory and those that rely upon flawed models and assumption-based modelling, do not lead to understanding but to feedback loops of unintended consequences…patterns and correlations of our own making!

Unidentified sources of risk and ill-informed (albeit well-intentioned) efforts to manage without UNDERSTANDING ‘causal relationships‘ has the opposite of the desired effect…

…unmanaged risk does not dissipate but is a source of systemic risk, mis-managed, it adds complexity is amplified through the business’ interdependencies and interactions, feeding-back as volatility and adding to uncertainty.

‘Conventional wisdom’ (or herd mentality) based upon assumptions of knowledge, can/does impair our ability to understand and address issues at source.

Before we had the tools to increase our knowledge we were ignorant but, to have the tools and not use them is dangerous and costly ineptitude!:

‘Corporate Latency’ is a significant source of, reducible, exposure in every domain and, unless it is better managed, we cannot build resilient systems or create ecosystems that can claim to be truly sustainable.

See on ontonix.blogspot.it

It’s not a behavioural problem: it’s the system

What we need if we want organisational transformation, if we want more effective organisations, if we want people to find the work they do meaningful: we need to work with the whole system. A buddy of mine in England recently observed that most people seem uninterested in effectiveness. Sad but true, I fear. Still desperately clinging on to “scientific” management mythologies, many folks just seem to want the numbers to add up and people to do what they’re told. A scary prospect if your business has just appointed a new global CEO who is a bean-counter by background and disposition and whose single-minded purpose is to show the shareholders that they are getting richer every quarter. Calling a performance issue a “behavioural problem” comes out of a mechanistic worldview. Yuck.

quantum shifting

Don’t ask a systems thinker for advice on managing performance or staff engagement.  They will probably say something pretty fruity and you’ll wind up frustrated by how fervently they trash conventional wisdom on the subject.  Of course performance, engagement, recruitment, they’re all connected, so your systems thinking friend will sound like a fruit loop because they’ll see the whole picture and proceed to suggest that you are asking the wrong questions, when all you wanted to know is “how to get people to do stuff”.  You go to them as a sounding board because there is something you like about the way they think; when you’ve talked previously, they come up with ideas that seem counter-intuitive at first, but are actually surprisingly on the money.  However, when it comes to a sticky situation you are actually dealing with, you don’t want to hear them bang on about the system, the…

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The Dynamic Properties of Complexity and Business Resilience

Based on how close a system functions to its critical complexity one may infer its “state of health” or resilience. Resilience is of great importance since it reflects the system’s ability to maintain functionality in the presence of sudden and unexpected events (shocks). Our turbulent economy will be characterised by and increasing number of shocks of growing intensity. This is because it is highly interconnected and, at the same time, fragile.

via Ontonix S.r.l.: The Dynamic Properties of Complexity and Business Resilience.